Supply is elastic whenever the elasticity value for supply is positive and greater than 1.

Name: Supply is elastic whenever the elasticity value for supply is positive and greater than 1.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

This statement is correct. When the elasticity value for supply is positive and greater than 1, it indicates that the quantity supplied changes proportionally more than the percentage change in price. This means that suppliers are highly responsive to changes in price, and as a result, the supply is elastic.

Supply Is Elastic Whenever the Elasticity Value for Supply Is